Palladium theater sold to promoter John Peters

Tuesday

Jan 1, 2013 at 6:00 AMJan 1, 2013 at 2:08 PM

By Bronislaus B. Kush TELEGRAM & GAZETTE STAFF

When John Fischer and John Sousa bought the Palladium on Main Street 22 years ago, they never thought the landmark theater would become one of New England’s largest and most successful venues for heavy metal rock bands.

They had other plans for the longtime entertainment complex.

Shortly after buying the aging, four-story building for $1.3 million, the two were approached by the Holiday Inn hotel chain about entering into a partnership that would result in the structure being torn down and replaced with a new office building and a new hotel.

The national and local economies, however, quickly soured and the plan died.

“Things would have been a lot different, if the economy hadn’t turned as badly as it did,” said Mr. Fisher, a local lawyer.

The economic picture never changed enough for Mr. Sousa and Mr. Fischer to make a substantial return on their investment.

Yesterday, the pair sold the Palladium for $1,475,000 to John Peters, who runs MassConcerts, the promotional company that books acts at the club.

According to Mr. Fischer, Mr. Peters, who could not be reached for comment, plans no changes to the Palladium.

“He deserves the building,” Mr. Fischer said. “He’s the guy that’s been keeping it open for years.”

The parties closed the deal Monday afternoon, just before the local office of the state Registry of Deeds closed for the holiday.

The facility opened in November 1928 as the Plymouth Theater and operated as a movie house and performance venue for vaudeville acts and musicians.

The building was renamed the E.M. Loew Center for the Performing Arts in 1980 and Mr. Fischer and Mr. Sousa bought it in 1990.

Over the last few years, it has drawn mainly heavy metal acts geared toward teens and young adults.

According to Mr. Fischer, the building, which is not on the National Register of Historic Places but is on the list compiled by the Massachusetts Cultural Resource Information System, has been for sale for about three years.

Over that time, two other parties had approached about purchasing the theater with the intent of marketing the venue for more mainstream and broader entertainment acts. Mr. Fischer said those talks fell through because of a lack of financing.

Mr. Fischer and Mr. Sousa had been negotiating with Mr. Peters about a potential sale since last summer.

The pair had been upset about the dramatic increase in the Palladium’s assessed valuation, which made it difficult for the two to maintain the property.

Under its initial assessed valuation for fiscal 2012, the annual property taxes on the Palladium were $65,887.

Last fall, the city reduced the assessed valuation from $2.26 million to $1.65 million. The reduction reduced the tax burden by $17,823 or more than 25 percent.

Mr. Fischer said he seriously thought about selling the building after The Station nightclub fire Feb. 20, 2003 in West Warwick, R.I., that killed 100 concert-goers.

“That fire really bothered me because so many kids pack into our building for concerts,” Mr. Fisher said. “I was concerned.”

He said he’s been in the building only twice over the past five years but remembered dropping in from time to time when more middle of the road acts played the theater.

“I really don’t understand the music that the kids like today,” he said. “This sale is the best decision for all. We never planned on getting into the entertainment business and MassConcerts is great at what it does.”

The building, which once sported a bowling alley in its basement, was built in 1928 by E.M. Loew, the famed theater mogul.

Performers making an appearance at the facility through the years included Bob Dylan, B.B. King, Prince, Sam Kinison, the B-52s, Muddy Waters, Frank Zappa, Kanye West, and the Three Stooges.

Today, acts such as Insane Clown Posse, Killswitch Engage and other heavy metal bands are featured on its marquee.